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Category: Corporate Earnings

On July 8, the United States economy showed a promising increase in employment numbers by 297,000 jobs. Contrary to the expectations of many, the additional jobs reflected a significant increase compared to the gain experienced a month ago. Currently, Q2 corporate earnings reports are being made, which may either refute or back-up the economic numbers.

A Highlight of Q2 Corporate Earnings in the US

With major corporate institutions revealing their Q2 reports to the public and stakeholders, major banks have portrayed positive results contrary to the expected performance. These results are attributed to their weak operating condition. However, they are still experiencing low-interest rates as well as over regulations, which impede the expansion of their net interest margins.

The losses currently being experienced by oil companies due to a slump in oil prices is expected to contribute to further reduction in SP earnings. Further, the market expects another lower quarter for United States earnings. Consequently, the down earning quarters are propelling the SP P/E ratio to disturbingly high levels. This case has been experienced in dividend producing stocks in the utilities and consumer staples. Since the increase in job numbers after July 8, the mood in Wall Street has gradually shifted from a negative mood to a hopeful one.

Warren Financial is geared to identify growth numbers from entities such as Global Payments, Under Armor, A. O. Smith, Edwards Life Sciences and many others. Further, upside rises from larger entities such as Boeing, Google as well as Facebook are expected.